Sergio Eromotti, the UBS chief, decided to refocus the Bank business by cutting the investment banking assets to half. It has zoomed on the underperforming parts of FICC unit, which uses half the capital but has delivered only 15% of the pre tax profit. However, as the global crisis has altered the landscape of investment and corporate landscape, investment banks should have alternate strategy to be in bulge bracket. UBS has already sounded a retreat from the bulge bracket but has another business, the wealth management unit, to fall back upon.
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